C H A P T E R 10 Sport Management and Marketing Agencies William A. Sutton, University of Central Florida Nicole Fowler, National Basketball Association Mark A. McDonald, University of Massachusetts Amherst Chapter 10 Introduction • A sport management and marketing agency is a business that acts on behalf of a sport property • More appropriate term is sport and lifestyle management and marketing agencies • Early history of agencies • Arrival of IMG Functions of Sport Management and Marketing Agencies • Some agencies perform only one function (or a few) • Some agencies perform all functions • Agency functions – Client management and representation – Client marketing and product endorsement and placement (continued) Functions of Sport Management and Marketing Agencies (continued) • Agency functions – Event creation and development – Event management and marketing – Property representation and licensing – Television development and production – Negotiation of media contracts (continued) Functions of Sport Management and Marketing Agencies (continued) • Agency functions – Strategic planning, sponsorship solicitation and consulting – Hospitality management services – Grassroots and participatory programs – Research and evaluation – Financial planning and management Sidebars • Sport Marketing as Part of a Communication Strategy • Sponsors Report and the NTIV Analysis Types of Sport Management and Marketing Agencies • Thousands of agencies and quasi-agencies • Vary in size, budget, type of clientele, and scope of services • Types include full service, general, specialty, and in-house • See table 10.1 Full-Service Agencies • Full range of services – Client management, event creation, TV development – Sponsorship solicitation, hospitality services – Research and evaluation, financial planning • Perform function in house with own personnel Full-Service Agency: IMG • History • Client management • Event management and marketing • Television • Corporate marketing General Agencies • Integrated approach to development of client programs • Business components of 16W Marketing – Athlete, coach, and broadcaster marketing and representation – Team and venue services – Corporate consulting and property marketing – Hospitality and event management Specialty Agencies • Velocity Sports & Entertainment • SportsMark Management Group Ltd. In-House Agencies: Professional League Departments • Departments that perform sport functions on behalf of the parent company • Have only one client: themselves • Function as gatekeepers in reviewing opportunities presented to them • Work with other units of the corporation International Sidebar • Marketing the Beijing Olympic Games • Helios Partners consulting company – Contract negotiations to secure sponsorship rights – Created a marketing roadmap – Implemented plan – Sample client: Lenovo • International Learning Activities Practical Application • Critical thinking in agency activities – In-house vs. outsourcing options – IMG College • Ethics in agencies and revenue sources: advertising by spirit brands Careers in Sport Management and Marketing Agencies • Careers are diverse and challenging • Entry requirements • Educational background • Required skills Figure 10.2 Challenges Facing Sport Management and Marketing Agencies • Major challenges – In-house versus outsourcing – Conflicts of interest – Mergers and acquisitions – Labor unrest • Top 10 issues that agencies must address Three Review Questions 1. What are the functions performed by sport management and marketing agencies? 2. How are specialty agencies different from full-service sport management and marketing agencies? (continued) Three Review Questions (continued) 3. Founded in 1960, IMG benefited from being the first and best-known sport management and marketing agency. Which events reviewed in this chapter have affected the competitive situation faced by IMG?